KFA lenders complicate Diageo deal; may sell pledged USL shares - Angel Broking

As per media reports lenders to Kingfisher Airlines (KFA) have indicated they may sell 2% of USL shares pledged with them as collateral either in the market or at a higher price to outsider to recover the funds they have lend to the company. If the lenders don't release the 2% stake, then the UB group will be forced to find extra shares in order to complete the deal. This could complicate the deal as 98% of the promoter (UB group) stake of 27.5% in USL is pledged. Although, the recent development is a minor setback for the USL-Diageo deal we expect the deal to go through. The deal has already got the requisite approvals from SEBI and CCI.

We maintain a neutral view on USL.

Source : Equity Bulls

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